Limitation of Weighted SWOT analysis of Hershey This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.
The general rule is to identify key external factors and additional key internal factors, but you should identify as many factors as possible. Weights have the same meaning in both matrices. Examples We provide only the general examples of both matrices.
The firm can receive the same total score from 1 to 4 in both matrices. The information from the PEST analysis reveals which factors currently affect or may affect the company in the future. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies.
In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.
Certain capabilities or factors of an organization can be both a strength and weakness at the same time. Weights Each key factor should be assigned a weight ranging from 0. Free Press, A. The process of assigning ratings in IFE matrix can be done easier using benchmarking tool.
SWOT matrix has the same limitation and it means that some factors that are not specific enough can be confused with each other. Both analyses only identify and evaluate the factors but do not help the company directly in determining the next strategic move or the best strategy.
This investment has opened new sales channel for Hershey. Threats Hershey Facing - External Strategic Factors New environment regulations under Paris agreement could be a threat to certain existing product categories.
Limited success outside core business — Even though Hershey is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. Chandler, Strategy and Structure Cambridge, Mass.: When using the EFE matrix we identify the key external opportunities and threats that are affecting or might affect a company.
MIT Press, O. Therefore, it is a more difficult process than identifying the key factors.
Reliable suppliers — It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. The marketing of the products left a lot to be desired. The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets.
In internal evaluation a low score indicates that the company is weak against its competitors.
The same situation is with opportunities and threats. There are gaps in the product range sold by the company. Government green drive also opens an opportunity for procurement of Hershey products by the state as well as federal government contractors.
Williamson, Markets and Hierarchies New York: Try to look at which factors could benefit the company and which ones would harm it. Ratings from can be assigned to each opportunity and threat, but only the ratings from can be assigned to each weakness and to each strength.
The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.
Strong distribution network — Over the years Hershey has built a reliable distribution network that can reach majority of its potential market. The numbers range from 4 to 1, where 4 means a superior response, 3 — above average response, 2 — average response and 1 — poor response.
The sum of all the weights must equal 1. This is one of the major limitations of SWOT analysis. Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
The company should improve its strategy and focus more on how take advantage of the opportunities.Essays - largest database of quality sample essays and research papers on Hershey S Ife Matrix. Hershey SWOT Analysis / Matrix Essays, Term Papers & Research Papers SWOT analysis is a strategic planning tool that can be used by Hershey managers to do a situational analysis of the organization.
The result from IE Matrix states that Hershey Company is appropriate for division 1 or can be described as grow and build forward integration and horizontal integration. The total weighted scores allow construction of the corporate-level IE 5/5(2).
The Hershey's company's top sellers such as Reese's PB cup, Hershey's chocolate, and Hershey with almonds should be maintained and managed as long as they can to make the most possible revenues.
IE Matrix IE Summary The Hershey Company falls under the average rating in the quadrant V of hold and maintain. IFE EFE The result from IE Matrix states that Hershey Company is from ACCOUNTING accountanc at Polytechnic University of Puerto Rico.
The Hershey Company History Organizational Structure Overview Introduction: 1. External Analysis Industry Map Five Forces Life Cycle Corporate Culture Analysis S.W.
IFE Situational Analysis Key Strategic Issues 1. Directional Indicators I/E Matrix Space Matrix Grand Strategy Matrix 2. Strategic Alternatives Ansoff Matrix TOWS Strategy.Download